Proposed Rules for Electronic 1099-DA Statements for Digital Asset Brokers

IRS Newsroom

Published March 5th, 2026

Detected March 13th, 2026

Summary

The Treasury and IRS have issued proposed regulations to ease electronic furnishing of Form 1099-DA statements for digital asset brokers. These rules offer an optional process for obtaining customer consent for electronic statements, reducing burdens associated with paper delivery. The proposed changes are effective for statements required on or after January 1, 2027.

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What changed

The Department of the Treasury and the Internal Revenue Service have released proposed regulations aimed at simplifying the electronic delivery of Form 1099-DA statements by digital asset brokers. The proposal introduces an optional alternative process that would allow brokers to obtain customer consent for electronic statements without needing to offer a paper option or allow customers to withdraw consent. This aims to reduce the administrative burden on brokers and customers, acknowledging the predominantly electronic nature of digital asset transactions. Brokers will be required to implement enhanced notice and delivery requirements to ensure customers are aware of electronic furnishing and maintain access to their statements.

These proposed rules, applicable to statements furnished on or after January 1, 2027, provide relief from the current requirement of providing paper statements unless a customer affirmatively consents to electronic delivery. Compliance officers at digital asset brokerage firms should review these proposed changes to understand the new optional consent and notification procedures. While these are proposed rules, they signal a move towards reduced paper-based reporting for digital asset transactions. The IRS is also seeking comments on similar electronic furnishing issues for Form 1099-B statements via Notice 2026-4.

What to do next

Review proposed regulations for electronic furnishing of Form 1099-DA.
Prepare to implement new optional consent and notification procedures for electronic statements.
Monitor for finalization of the proposed rules and any related guidance.

Source document (simplified)

IR-2026-29, March 5, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations to make it easier for digital asset brokers to provide statements electronically to customers, rather than sending paper copies.

The proposed regulations recognize the inherent electronic nature of digital asset transactions and are intended to reduce burdens on both brokers and their customers. The proposed regulations would give brokers an alternative, optional process for obtaining consent from their customers to receive 1099-DA statements electronically without having to offer them the choice of receiving the 1099-DA statements on paper. Under this process, brokers would also not have to provide customers with the ability to withdraw a previously provided consent to receiving the 1099-DA statements in an electronic format.

The proposed rules would, however, require brokers to meet certain enhanced electronic notice and delivery requirements and to provide customer access to the statements. Brokers must ensure that customers are made aware that an important tax return document has been furnished in an electronic format and that they have continuing access to their 1099-DA statements.

Under current rules, brokers of digital assets are required to provide Form 1099-DA, Digital Asset Proceeds From Broker Transactions PDF on paper to any customer who does not affirmatively consent to receiving the 1099-DA statements in an electronic format. Beginning with statements required to be furnished on or after Jan. 1, 2027, brokers are permitted to follow these new proposed rules when furnishing 1099-DA statements for transactions.

The Treasury Department and IRS acknowledge that the cost of printing and mailing paper 1099-DA statements may be unnecessarily burdensome for brokers because of the large number of digital asset transactions that some customers engage in each year. This furnishing relief for brokers is feasible because digital asset customers almost exclusively conduct transactions electronically.

Digital assets include, for example, certain convertible virtual currencies and cryptocurrency, as well as stablecoins and non-fungible tokens.

The Treasury Department and the IRS today also issued Notice 2026-4 PDF requesting comments from the public on the issues involved with electronic furnishing of 1099-B statements and other payee statements. Comments submitted on the electronic furnishing of 1099-B statements or other payee statements should be submitted in accordance with the instructions provided in Notice 2026-4.